ACCOUNTING Chapter Notes -Cash Flow Statement, Income Statement, Deferral

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Wiki that provides information on how to understand and prepare a cash flow. More often than not, you can tell a business is doing well by how much money it has. Apart from having money, what will be more important is knowing where that money is coming from. The company needs to know whether the money came from earning revenue or just borrowed. These things can be tracked with the use of the cash flow statement. The cash flow statement shows where money moves in an organization. It is a statement that divides the activities of a company into parts and shows how cash moves around in these activities. It shows whether cash is moving in or out of the company. It is important to learn about cash flow statements because cash flow statements can show how well a company is actually performing.

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